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What would you do?

K

Kim Richardson

New Member
Hello

Newbie here I hope I don’t do or say anything naughty

I’m hoping for some help or direction on where to go with this if possible? Sorry this might be quite long.

I own a house, woohoo good start, it cost 335k (£60k deposit) two years ago and we owe £269k and it’s now valued at £365k the mortgage deal has ended and I’m on a variable rate (£250 higher a month than the flat rate)

I have planning permission for a new attached build on the land that we plan to move into. I have a pretty standard restrictive covenant for building on the land (standard ex council) in the deeds. Firstly what company would you use for indemnity insurance for this? What prices am I looking at? I have had an approximation of £200 which seems very low.

Next, I have 100k available savings and the build & current house renovations all look like it’s going to be around £260k to do. That’s with a company project managing the whole thing. I went through the quote matistically and found 25% of stuff missing as I have done a simple renovation before and know a bit, plus I had a builder and architect to hand so really feel I have a hand on the missing costs everyone goes on about.

The idea was to remortgage the current house after deeds split, with a different lender then get a builders mortgage on the land to finance the rest of the build using the 100k for the renovation and some of new build.

I got a solicitor to look at splitting the land deeds so both the property and land were in mine and my partners names. But today she threw in the towel as she wasn’t happy doing a simultaneous split of deeds whilst transferring to a new mortgage etc Plus she had a refusal by the land registry before with a similar case

What would you do? Can we get development finance instead? If we pay the 100k off the mortgage so it’s £169 left and do development finance on the whole project. Once completed we can split the deeds during the sale of the original (renovated) house. Or was I on the right route and the only way forward is a bridging loan to get rid of mortgage company. Then ask land registry to split deeds, with no guarantee of length of time this could take etc

Should I start a company and do the build inside that? Any other ideas? Feeling a bit meh about it all. We want to do things openly and honest but keep getting knock backs I.e. I’m not getting my own way

The final estimations are a value of £415k and £435k once completed. The aim would be to move into the new build and sell the other house and reduce our own mortgage as much as we can.

Thanks in advance for any replies good or bad ❤
 
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nmb

Well-Known Member
I think it might be best to split this particular conundrum into relatively short questions/scenarios which put together should help you tackle the bigger picture.
 
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diyhelp

Active Member
Looking at one particular angle, you will need to take advice whether it is sensible to hold your building operations within the company. There are pros and cons to this although it is interesting that the recent buy to let taxes seemed to more impact personal holdings as opposed to company issues. For example, mortgage interest rate relief may well have diminished in value for personal holdings but the simple prerogative of offsetting costs against gains still holds true for companies.
 
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